Whole life insurance is a great vehicle for saving money. It serves many purposes, but for this article find out the best way to begin saving money.
When we are young, we don’t think about Life Insurance since many of us are still under the notion that we will either live forever, or our life ending is so far away, but the fact is that we all could have been called to our afterlife yesterday! Therefor, many don’t see the value in paying premiums on a Whole Life Insurance Policy. The fact is that the premiums are the cheapest while we are young and healthy. In addition, the policy has time to accumulate cash growth inside the policy which can be borrowed during our lives.
Wouldn’t it be nice to have the down payment on a home or cash to fund college or a new business venture? The best policies do charge interest on a loan from the cash value, but if the cash value continues to grow and if you are a smart shopper you will locate an insurer who pays not only interest, but dividends as well. While the dividends are not guaranteed, a MUTUAL Insurer will likely guarantee the minimum interest and dividend. The difference between a Mutual insurer and a regular or non- mutual insurer is that the Mutual insurer is par owned be each and every policy owner, which in turn means they please policy holders, not market investors. You reap the dividends and not the public shareholders.
People I have met time and time again wish to delay that policy purchase for one reason or another and I cant express enough to tell them it is one of the smartest investments while they are young and healthy, not only for protecting yourself, your family, your estate and loved ones, but you will have accumulated substantial funds within the policy in addition to the face amount!
To date the both the cash growth (there is one or two exceptions consult your adviser) and the face value remain tax free. Both remain tax free if you didn’t come home last week and your family can survive. This is the wisest investment I have ever seen.
As long as you have chosen a premium you can afford even in a budget stretch, you are golden….and what?, you don’t have the money for your mortgage? If you have purchased that policy many years prior to the home, you can borrow from your policy so as not to lose your car and home. It is a WIN, WIN, WIN.